A Toyota spokesman said the company would monitor the market and company over the period and make adjustments if necessary.

“Following extensive consultation with our employee representatives, and with input from all employees, it has been agreed that the best way to secure long-term employment is to temporarily reduce working hours and base pay by 10%,” he said.

“We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period.”

Peter Tsouvallaris, a representative for union Unite, said the move showed workers were willing to make short-term sacrifices to secure their future.

“Any decision to cut wages and working time is never taken lightly, but the agreement we have reached with Toyota will ensure none of our members’ benefits are eroded and that these skilled workers will remain in place and at work ready for when the upturn comes,” Tsouvallaris said.